The Causes and Consequences of Long-Term Unemployment in Europe

Stephen Machin and Alan Manning

CEP Discussion Papers from Centre for Economic Performance, LSE

Abstract: One of the most striking features of European labour markets is the high incidence of long-term unemployment. In this paper we review the literature on its causes and consequences. Our main conclusions are that: the rise in the incidence of long-term unemployment has been 'caused' by a collapse of outflow rates at all durations of unemployment while the long-term unemployed do leave unemployment at a slower rate than the short-term unemployed, this has always been the case and their relative outflow rate has not fallen over time there is no evidence that, for a given level of unemployment, the incidence of long-term unemployment has been ratcheting up over time once one controls for heterogeneity of the unemployed, there is little evidence of outflow rates that decline over a spell of unemployment While these findings suggest that long-term unemployment is not a problem independent of unemployment itself, one should recognise that the experience of long-term unemployment is a horrid one for those unfortunate enough to experience it.

Date: 1998-07
References: Add references at CitEc
Citations: View citations in EconPapers (30)

Downloads: (external link)
https://cep.lse.ac.uk/pubs/download/DP0400.pdf (application/pdf)

Related works:
Chapter: The causes and consequences of longterm unemployment in Europe (1999)
Working Paper: The causes and consequences of long-term unemployment in Europe (1998)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cep:cepdps:dp0400

Access Statistics for this paper

More papers in CEP Discussion Papers from Centre for Economic Performance, LSE
Bibliographic data for series maintained by ().